- JPMorgan CEO Jamie Dimon: in the name of national security, tariffs might be necessary.
Amid inflation concerns surrounding President Donald Trump’s proposed trade policy, JPMorgan CEO Jamie Dimon said the positive effect that increased tariffs could have on national security could outweigh other impacts.
Dimon explained that tariffs can be used as “an economic tool” or “an economic weapon,” in an interview with CNBC at the World Economic Forum held in Davos, Switzerland this week.
“If it’s a little inflationary but good for national security, so be it, get over it” Dimon advised.
Before Trump took office, he posted on his social media platform Truth Social that on Jan. 20, the day he took office, that he would charge a 25% tariff on all products coming into the United States from Canada and Mexico.
“The Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country,” he said in the post.
Trump has yet to sign such an executive order, telling reporters that he will wait until Feb.1 to impose the tariffs. According to his advisers, he is still confident about the tariffs and does not plan to pull back, NBC News reported.
The American First Trade Policy aims to limit the country’s international dependence by promoting investment and productivity within the U.S. borders.
Dimon in his remarks said tariffs are ultimatums meant to bring foreign leaders to the table to settle trade disputes.
“We’re going to find out,” Dimon said, surrounding Trump’s intentions.
Additionally, Trump is contemplating a tariff on Chinese goods for China’s alleged role in supplying fentanyl.
“We’re talking about a tariff of 10% on China based on the fact that they’re sending fentanyl to Mexico and Canada,” Trump told reporters.
While inflation has cooled since peaking in 2022, talk of tariffs has led to concerns among economists as the cost of consumer goods remains high.
“Tariffs are particularly ill-timed given the persistence of inflation following the pandemic-induced price shock,” Joe Brusuelas, chief economist at RSM US told The Wall Street Journal.
JPMorgan did not immediately to Fortune’s request for comment.
